DHS awards $7.97M for Illinois security services, with Paragon Systems Inc. as the sole awardee

Contract Overview

Contract Amount: $7,966,345 ($8.0M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-01-08

Contract Duration: 99 days

Daily Burn Rate: $80.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60612

State: Illinois Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.0 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a full and open process, but only one award was made. 3. Risk indicators are moderate, primarily related to performance monitoring. 4. Performance context is for essential security guard services across Illinois. 5. Sector positioning is within government contracting for security services.

Value Assessment

Rating: fair

The total award amount of $7.97 million over a 99-day period for security services in Illinois suggests a significant but potentially justifiable cost for comprehensive coverage. Benchmarking against similar contracts for security guard services is challenging without more granular data on guard hours, skill levels, and specific security requirements. However, the contract's duration and the nature of the services provided (armed protective security officers) indicate a substantial operational requirement. The firm-fixed-price structure helps control costs, but the overall value proposition depends heavily on the effectiveness and efficiency of the services delivered by Paragon Systems Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the data indicates only one award was made, which could imply that only one bidder met all the requirements or was the most competitive. The specific number of bids received is not provided, making it difficult to fully assess the breadth of competition. A single award from a full and open competition might suggest a highly specialized service or a very competitive initial pool where one vendor significantly outperformed others.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to solicit the best possible pricing and service offerings from a wide range of potential providers, driving down costs through market forces.

Public Impact

The primary beneficiaries are federal agencies within Illinois requiring armed protective security services. The services delivered include security guard and patrol functions to protect federal assets and personnel. The geographic impact is statewide across Illinois. Workforce implications include the employment of armed protective security officers by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor if future needs arise.
Ensuring consistent service quality across all locations in Illinois.
Monitoring contractor performance to ensure adherence to security protocols.

Positive Signals

Awarded through a full and open competition, indicating a broad market solicitation.
Firm-fixed-price contract type helps manage cost certainty for the government.
Clear definition of services required for protective security.

Sector Analysis

The security guard and patrol services sector is a significant component of the broader government contracting market, particularly for federal agencies responsible for physical security. This contract falls within the NAICS code 561612, which covers establishments primarily engaged in providing security guards and patrol services. The market for these services is competitive, with numerous providers ranging from large, established firms to smaller, specialized companies. Federal spending in this area is consistent, driven by the need to protect government facilities, personnel, and sensitive information across various locations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The award to Paragon Systems Inc., a presumably larger entity, means that opportunities for small businesses would likely arise only if Paragon chooses to subcontract portions of the work, which is not explicitly mandated or indicated in the award details.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of Homeland Security's Office of Procurement Operations. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract arise.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Statewide Security Guard Contracts
Armed Security Personnel Services

Risk Flags

Potential for single-awardee dependency
Performance monitoring complexity
Geographic coverage challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.0 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS

Who is the contractor on this award?

The obligated recipient is PARAGON SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-01-08.

What is the historical spending pattern for similar security services by the Department of Homeland Security in Illinois?

Analyzing historical spending for similar security services by DHS in Illinois requires access to detailed contract databases. While this specific award is for approximately $7.97 million over a short period, understanding the broader trend involves looking at prior contracts for armed protective security officers (PSO) or similar security guard services within the state. Factors such as contract duration, scope of services (e.g., number of posts, hours, specific security requirements), and the number of awardees in previous solicitations would provide context. A consistent or increasing pattern of spending might indicate a growing need or a stable requirement for these services, while a fluctuating pattern could suggest changes in agency needs, budget allocations, or market competition. Without specific historical data for DHS in Illinois, it's difficult to provide a precise spending trend, but federal agencies generally maintain ongoing requirements for security services.

How does the awarded price per day or per hour compare to industry benchmarks for armed security personnel?

Determining the precise price per day or hour requires breaking down the total award amount ($7,966,344.70) by the contract's duration and estimated labor hours. The contract period is from October 1, 2025, to January 8, 2026, which is approximately 99 days. If we assume a standard 24/7 operation across multiple posts, the daily cost would be substantial. Industry benchmarks for armed security personnel vary significantly based on location, required certifications, level of threat, and the specific duties performed. Major metropolitan areas and high-risk environments typically command higher rates. Without knowing the exact number of security personnel, hours worked per day per person, and the specific operational tempo, a direct comparison to industry benchmarks is challenging. However, the total award suggests a significant operational scale, and the firm-fixed-price nature implies the government has negotiated a set rate for these services.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

Key Performance Indicators (KPIs) for a contract like this, involving armed protective security officers (PSO), are crucial for ensuring the effectiveness and reliability of the services. While specific KPIs are not detailed in the award abstract, they typically revolve around critical aspects of security operations. Common KPIs include response times to incidents, adherence to post orders and procedures, personnel punctuality and attendance, successful completion of required training and certifications, incident reporting accuracy and timeliness, and overall effectiveness in preventing unauthorized access or security breaches. The government would likely monitor these KPIs through regular performance reports from the contractor, site visits, and feedback from federal personnel interacting with the security officers. Failure to meet established KPIs could result in corrective actions or penalties.

What is the track record of Paragon Systems Inc. in delivering similar federal security contracts?

Paragon Systems Inc. has a significant track record in delivering security services, including to federal agencies. A review of federal procurement data would reveal numerous past awards to Paragon Systems for guard services, protective services, and related security functions across various government departments and locations. Their experience likely includes managing large-scale security operations, deploying armed personnel, and adhering to stringent federal security regulations and performance standards. Assessing their track record would involve examining past performance evaluations, any documented instances of contract disputes or terminations, and their success in winning and executing similar, large-value federal contracts. Generally, companies that consistently win and perform on federal contracts of this nature have demonstrated a capacity to meet government requirements.

Are there any specific security threats or vulnerabilities in Illinois that necessitate this level of armed security presence?

The need for armed protective security officers (PSO) across the state of Illinois, as indicated by this contract, likely stems from the Department of Homeland Security's (DHS) mandate to protect federal facilities, personnel, and critical infrastructure. While specific threat intelligence is often classified, federal agencies are tasked with assessing and mitigating risks to their assets. This could include protecting federal courthouses, office buildings, laboratories, or other sensitive sites that may be targets for vandalism, theft, terrorism, or other security incidents. The statewide scope suggests a distributed requirement across multiple federal installations or responsibilities within Illinois. The presence of armed officers is a deterrent and a rapid response measure against potential threats, ensuring a baseline level of security mandated by federal standards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Securitas AB

Address: 13900 LINCOLN PARK DR STE 300, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,966,345

Exercised Options: $7,966,345

Current Obligation: $7,966,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP418DE5000001

IDV Type: IDC

Timeline